What a week for the Ags as they seemingly tried to prove that “what goes down must come up”! Sept corn picked up nearly 34 cents while Sept CME wheat picked up over 75 cents. Nov soybeans moved in excess of 45 cents higher and Dec cotton was up 361 points on the week, taking out the 67.00 resistance level in the process. Dec settled for the week at 67.51.
For next week…
Total net export sales of cotton against the current MY for the week ending June 18 were up slightly vs the previous week at 64.4K RBs. Sales cancellations were slightly lower at 10.3K RBs. Total export shipments for the period were off slightly vs the previous week at 206.2K RBs, but remain well ahead of the pace required to meet the USDA’s 10.7M bale export target and its associated 2014/15 and 2015/16 C/O projections. Upland sales against 2015/16 were off vs the previous sales period at 52.7K RBs.
Total commitments stand at nearly 106% of the USDA’s export projection. Export shipments will need to average less than 120K RBs per week in order to hit the USDA’s target.
Overall, we take today’s data as supportive. It continues to look as if the US will export around 11M+ bales for the 2014/15 marketing year.
The Dec contract picked up 4 points ahead of the weekly US cotton export report, settling at 64.59. The settlement was within the upper one half of the trading range. Mar lost 2 points, settling at 6460, the net effect leaving the Dec – Mar spread near flat at 1.
For tomorrow…
